US stocks rose, lifting the Standard & Poor's 500 Index to a second straight weekly gain, as some investors said the market had become inexpensive even if the US invades Iraq.
The 10 biggest companies by market value rose, including Microsoft Corp, Johnson & Johnson and General Electric Co.
Verizon Communications Inc advanced after a Credit Suisse First Boston Inc analyst recommended the largest US local phone company's shares.
"Stocks are at least reasonably valued, if not cheap," said Rick Jandrain, chief investment officer at Banc One Investment Advisors, which manages US$155 billion in Columbus, Ohio. "The economy isn't all that bad and companies basically made their earnings numbers in the fourth quarter."
For the week, the S&P 500 rose 1.6 percent, paring its 2003 loss to 3.6 percent. The Dow average rallied 1.4 percent for the week, while the NASDAQ Composite Index jumped 3 percent, its biggest rise in six weeks. The NASDAQ is up 1 percent for the year.
Almost 1.4 billion shares changed hands on the New York Stock Exchange, up 2.2 percent from the average of the past three months. Five stocks rose for every two that fell on the Big Board.
Among the biggest companies, Microsoft rose US$0.46 to US$24.61, Johnson & Johnson advanced US$1.56 to US$53.48 and General Electric climbed 45 cents to US$23.80. The three contributed the most to the S&P's gain.
Still, stocks may have rallied more were it not for the dispute with Iraq, some investors say. The companies in the S&P 500 sell for an average of 16.5 times this year's expected earnings, down from 22 at the start of last year.
"The odds are definitely in favor of a US attack on Iraq whether we get a UN resolution or not and that's keeping a lid on stocks," said Jandrain, who bought shares of Wal-Mart Stores Inc and PepsiCo Inc last quarter for his One Group Large Cap Growth Fund. "Everybody's just waiting."
Verizon rose US$0.88 to US$35.64. CSFB analyst Lara Warner raised her rating to "outperform" from "neutral," saying recent declines make the stock attractive. The former Bell operating companies fell yesterday after US regulators voted to retain rules forcing the carriers to sell rivals discounted access to their networks. Verizon fell 8.3 percent the past two days.
BellSouth Corp, the No. 3 US local phone company, jumped US$0.90 to US$21.50 after Sanford C. Bernstein & Co analyst Jeffrey Halpern raised his rating to "outperform" from "market perform."
The stock had fallen 11 percent the prior two days.
Target Corp rose US$1.71 to US$28.48 after a US Bancorp Piper Jaffray analyst upgraded the second-largest US discount retailer to "strong buy" from "outperform." The shares are cheap at 13.1 times expected earnings this year, compared with 16.8 times historically, analyst Jeffrey Klinefelter wrote in a report. Competition from Kmart Corp's liquidation sales is gone and Target's credit portfolio is stabilizing, he said.
Agilent Technologies Inc, which makes gear to test computer chips and telecommunications equipment, rose US$0.85 to US$13.45.
The company will cut 4,000 jobs, or 11 percent of its staff, after the company had its biggest quarterly loss because of falling demand for testing equipment.
BEA Systems Inc, whose Web software is used by Amazon.com Inc and Charles Schwab Corp, fell 58 cents to US$10.63. The software maker's chief executive officer said the threat of conflict in Iraq makes it hard to predict earnings. "The geopolitical situation right now is really unstable," CEO Alfred Chuang said in an interview. "We don't know what impact that will have."
Tupperware Corp, a seller of food containers, tumbled US$1.90 to US$12.89. First-quarter results were "significantly" hurt after snowstorms in the Midwest and Mid-Atlantic states slowed sales, the company said.
JD Edwards & Co fell US$1.14 to US$11.19. The company, which makes accounting management software, reported disappointing revenue from its services business in the fiscal first quarter, said analyst Kash Rangan of Wachovia Securities. The company forecast second-quarter profit of US$0.06 to US$0.07 a share, less than the 8-cent average estimate of analysts surveyed by First Call.
American Electric Power Co rose US$0.90 to US$21.63, OGE Energy Corp gained US$0.48 to US$17.40 and Hawaiian Electric Industries Inc. advanced US$0.67 to US$40.42. Lehman Brothers Inc analyst Daniel Ford upgraded electricity stocks to "neutral" from "negative" and raised his ratings on the three companies, saying the are better bargains after price declines and as the risk of restated financial results has declined.
Allegheny Energy Inc rose US$0.39 to US$7.89. The owner of utilities in five US states agreed with its lenders not to restore its dividend, preserving cash as it seeks to avoid bankruptcy by refinancing at least US$1.3 billion in debt.
Benchmark indexes briefly slumped around 10:20am after a barge carrying gasoline exploded at a petroleum terminal owned by Exxon Mobil Corp on Staten Island, the southernmost part of New York City. The explosion renewed concern about terrorism, traders and investors said. The FBI said it was a refueling accident, and there was no indication the blast was the work of terrorists.
Exxon Mobil shares rose US$0.55 to US$34.18.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
Taiwan’s official purchasing managers’ index (PMI) last month rose 0.2 percentage points to 54.2, in a second consecutive month of expansion, thanks to front-loading demand intended to avoid potential US tariff hikes, the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. While short-term demand appeared robust, uncertainties rose due to US President Donald Trump’s unpredictable trade policy, CIER president Lien Hsien-ming (連賢明) told a news conference in Taipei. Taiwan’s economy this year would be characterized by high-level fluctuations and the volatility would be wilder than most expect, Lien said Demand for electronics, particularly semiconductors, continues to benefit from US technology giants’ effort
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
RSS